Cable firm tells P-G mayor its system will be improved

At a meeting last Thursday with two RCN representatives, Girardy
was assured that not only will the upgrade take place, but
Peapack-Gladstone will be among the first communities to receive
the enhanced service. "I think we got into the box early,"
commented Girardy.

However, the mayor said, the improved service probably won't go
into effect until sometime in 2003 because RCN must first build a
new equipment "node" in the Bernardsville area to serve the cluster
of local towns that includes Peapack-Gla dstone.

RCN Corporate Counsel Philip Passanante said Monday that the
node would house high-tech equipment needed to provide customers
with additional cable TV channels, high-speed two-way internet
access and other services.

"We hope that once we're in that phase, Peapack-Gladstone will
be one of the first systems constructed," said
Passanante.

Passanante said there is no time schedule yet for construction,
as the company is still negotiating to acquire property for the
node.

He added that he doesn't know how the commitment to build the
node will affect other local communities served by RCN. Those towns
include Bernardsville, Far Hills and Bedminster Township.

For most of the this year, twin borough officials have been
trying to pin down R CN on a pledge the firm made to rebuild its
system in Peapack- Gladstone.

At a franchise renewal hearing in June 2000, RCN representatives
promised to rewire the town with fiber optic cable. The rebuild of
the system would allow for m ore video and music channels,
high-speed internet access and the possibility of other services
such as video on demand.

By this January, however, RCN had still not put its verbal
pledge into writing and borough officials were hearing reports that
RCN was struggling financially and might not be able to meet its
commitments.

Twin borough officials also learned that many other
municipalities in central New Jersey were facing similar situations
with RCN. Representatives of towns served by RCN began meeting to
discuss ways of either forcing the cable firm to rebuild or
attracting another cable firm to provide competition.

After holding a second franchise renewal hearing in June, the
Peapack- Gladstone Council adopted an ordinance that would, in
effect, hold RCN to the promises it made one year
earlier.

Although borough officials expected that RCN would fight the
ordinance, the comp any took a different tack.

Faced with increasing pressure from municipalities and the state
Board of Public Utilities (BPU), RCN announced plans in early
September to rebuild the systems in all 31 of the central New
Jersey towns it serves.

Because RCN's franchise with Peapack-Gladstone was supposed to
be renewed more than a year ago, Girardy requested at a meeting
last week with Passanante and RCN Regional Manager Robert Wewers
that the twin borough be put at the top of the list.

Girardy said the two RCN representatives requested a few minor
changes to the borough's ordinance, mostly increasing the number of
years in its proposed new franchise from seven to 10. It is now up
to RCN to write the borough a letter outlining the amendments it
wants, the mayor said.

Passanante confirmed that RCN is "substantially in agreement"
with the terms of the borough's ordinance, saying there are "more
resolved issues than unresolved issues."

Passanante added that because the financial investment to rewire
the twin borough is enormous, and many of the roads have a low
housing density, the company needs a period of approximately 10
years to recoup its investment.

"This is not an upgrade of an existing system, it's a rebuild of
a system," emphasized Passanante. "It's a new system that's much,
much more sophisticated than what's currently in place."

RCN has pledged to spend a total of $75 million rebuilding the
systems in its 31 New Jersey franchises. The rebuilding has already
taken place in three communities: Hillsborough, Franklin Township
and Millstone in southern Somerset County.

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